Organization of production:

4 requirements for production of goods and services.

1. Land
a. Also Water, forest, minerals
2. Labour
3. Physical capital- inputs
a. Fixed capital
i. Tools, machines, buildings
ii. Eg: plough, generator, computer
iii. Used in production for many years
b. Working capital- raw materials, money.
i. Eg: clay- potter, yarn- weaver, money for payment.
ii. They are used up.
4. Human capital- knowledge and enterprise
a. Able to put together all to produce goods and services.

Factors of production:
1. Land
2. Labour
3. Physical capital
4. Human capital

Farming in a typical village:

1. Land is fixed.
2. Is there a way one can grow more from the same land
UP-village of western part: Multiple cropping- common way of increasing
production
I. rainy season- kharif- jowar, bajra- animal feed.
II. October to December- potato.
III. Winter season- rabi- wheat.
IV. Part of land- sugarcane- once in a year.

3 crops- possible- well developed s/m of irrigation and electric supply- tube
well
  By mid 1970s- entire 200 hectares- irrigated.
 Not all in country well irrigated except riverine plains and coastal
regions.
- Deccan plateau- less iriigation.
- India- 40% of total cultivated area has irrigation.
Remaining- rain fall dependent.

Increasing production by
-multiple cropping
-modern farming methods for higher yield(produce on a given land)

Till 1960- traditional seeds, manure, less irrigation- low yield

Green revolution- late 1960s- intro HYV varieties- wheat, rice- more yield- but
plenty of water, chemical fertilizers, pesticides.
- Modern farming method- first tried by Punjab, Haryana,
W.UP. some bought machinery- tractors, threshers-
rewarded with high yields of wheat.
- Eg; from 1300 kg to 3200 kg per hectare.- surplus- market.
3. Will the land sustain?
a. Modern farming methods over used the natural resource.
b. Green revolution- associated with the loss of soil fertility- chemical
fertilizers
c. Continuous use of ground water- depletion of the water table.
d. These are built up- over many years- once destroyed- difficult to
restore.. so to take care- future.

Chemical fertilizers:
a. Pollute water resources
b. Kill micro organisms in the soil- after time soil- less fertile.
c. Punjab- highest use of chemical fertilizers- high cost of cultivation.
4. How is land distributed between the farmers?
a. Large number of small plots- scattered in village- small farmers- 2
hectares or less
b. Half of the area- medium and large farmers > 2 hectares
c. A few > 10 hectares.

5. Who will provide the labour?

a. Farming require hardworking labour.
b. Small farmers- family themselves- labour
c. Medium and large farmers- hire labours. Wages- cash or in kind( crop)
d. Wages, duration vary- region, farm, crop, activity( sowing, harvesting)-
daily basis or particular activity or whole year.
e. The minimum wages set by Govt- Rs. 300/ day(Mar 2017)
f. Migration is common in most villages of India
6. The capital needed in farming
a. Modern farming needed more capital.
i. Small farmers borrow- high interest.
ii. Medium, large farmers- from savings.
7. Sale of surplus farm products.
a. Medium and large farmers sell the surplus produce in the markets-
usually quintals
b. Earnings- save, give for loans for poor farmers, use for next season
working capital, sometimes for fixe capital too or set up shops.

Non farming activities:

In a typical village 25%- may be- non farm activities
1. Dairy
a. Buffalos feed grass, jowar, bajra.
b. Traders set up collection and chilling centers- transport- long, far
2. An example of small scale manufacturing in a village
a. May be 10%- manufacturing.
b. Simple production methods- small scale- home or field- family labour
c. Eg: sugarcane crushing machine- jaggery.
3. The shopkeepers of a village
a. Small general stores, eatable shops near bus stand
4. Transport- a fast developing sector
a. Variety of vehicles. Transport has grown over the last several years.
b. Some landless labourer get govt. loans to buy bull, buffalo for
transport, milk- earn better than before.

Small farmers constitute 80% of total farmers in India.

24/100 workers engage in non farm activities in village.

Essentials for non farm activities to exapand:

a. Capital
b. Market
As roads, transport, telephone- more villages- connected- more non farm
activities in the future.